Brent Crude Archives - Page 3 of 4

Oil price up to near US$97 ahead of ECB meeting

September 4, 2012 jrobinson

(AP) -The price of oil crept up closer to US$97 a barrel today on expectations that the European Central Bank will soon announce new measures to fight the continent’s debt crisis.

By early afternoon in Europe, benchmark crude for October delivery was up 47 cents to US$96.94 per barrel in electronic trading on the New York Mercantile Exchange.

The contract rose US$1.85 to finish at US$96.47 Friday. There was no closing price Monday because of a public holiday in the US.

In London, Brent crude was up $1.72 at $116.29 on the ICE Futures exchange.

The ECB’s governing council is meeting Thursday and ECB President Mario Draghi is expected to reveal a new bond-buying programme aimed at easing borrowing cost for countries like Spain and Italy.

The ECB’s awaited announcement “is likely to prompt speculative financial investors to jump on the bandwagon and drive the (oil) price further upward,” said analysts at Commerzbank in Frankfurt.

“The development of prices and the commitment displayed by investors are at odds with the fundamental data, which continue to suggest an oversupply,” analysts at Commerzbank said. If the central banks fail to live up to expectations, oil prices are likely to drop sharply, they added.

Speculation about the ECB’s stimulus measures has helped support the euro against the dollar. After dropping to near two-year lows near US$1.20 at the end of July, the euro has pushed back to near US$1.26. That pushes up oil prices, which is traded in dollars and becomes cheaper for holders of other currencies when the dollar drops.

Oil analyst Stephen Schork said in a report that oil prices could see “increased volatility this week” due to the loss of a trading day Monday because of a holiday in the US.

The release Friday of US nonfarm payrolls for August, a closely watched gauge of employment in the world’s No 1 economy, also could impact prices, Schork said. He attributed recent swings in the oil price to the conflicting influences of a lower dollar and refinery disruptions in the US Gulf Coast that resulted from Hurricane Isaac.

While a substantial amount of oil and gas production remains offline, production is coming back as expected. No major damage to oil platforms or refineries has been reported.

In other Nymex energy futures trading, heating oil rose 2.53 cents to US$3.2055 a gallon and wholesale gasoline was up 2.31 cents at US$2.9959 a gallon. Natural gas fell 2.8 cents to US$2.771 per 1,000 cubic feet

Oil prices fall on Europe’s woes

July 25, 2012 jrobinson

The price of oil is dropping on fresh concerns about Europe‘s economy.

Benchmark oil fell US$1.44 on Friday to US$91.53 per barrel in New York. Brent crude, which is used to price international varieties of crude, was down US$1.42 to US$106.38 in London. A decline would be the first after seven straight gains.

The main focus for traders was Spain, where the government predicted that the country’s recession will extend into next year and the region of Valencia said it needed help from the central government to pay its bills. But Germany was also a concern as finance officials there said growth in Europe’s strongest economy likely slowed somewhat in the second quarter. Meanwhile, in the UK, the government said it had to borrow more than expected last month.

Europe’s lengthy battle with a massive government debt crisis has affected industries in other countries, such as the U.S., that do business there. It also has cut demand for oil and other energy products.

Oil had risen about 10 per cent since July 10 on concerns that renewed tensions between the West and Iran could result in a disruption of oil supplies from the Persian Gulf.

“After the long run-up in prices we’ve had the last 10 days or so, I think (events in Europe) kind of reminded people that the demand picture is still not very rosy,” said Michael Lynch, president of Strategic Energy & Economic Research.

Meanwhile, natural gas prices hit the highest level since early January as businesses and consumers cranked up air conditioning systems to stay cool in the hot weather. Natural gas rose three cents to US$3.01 per 1,000 cubic feet.

The price of natural gas fell below US$2 for the first time in more than a decade in April after a production boom boosted inventories. At the same time, a mild winter kept demand in check. The cheaper prices prompted many utilities to switch to natural gas from coal to fuel their generators.

In other energy trading, heating oil fell 3 cents to US$2.91 per gallon and wholesale gasoline prices fell 3 cents to US$2.91 per gallon.

News

Gas Price Rip-Off

July 9, 2012 jrobinson

THE EDITOR, Sir:

Over the past three months, the price of oil on the world market has fallen from a high in March of about US$105 per barrel to just under or around US$80 per barrel.

The drop in Brent crude has been even more precipitous, from US$124.70 in March to around US$91 today. These are reductions of more than 30 per cent since March.

Despite this, our gas, gas oil and oil-related product prices have trended down about five to seven per cent. What is amazing is that no one seems to notice or care.

In all other countries, the prices at the gas pumps, and of other oil-related products have fallen 15-20 per cent, or more, to match this fall since March.

Gas and gas oil at the pumps in Jamaica should be around $85 per litre.

Our gas pumps remain unaffected! Petrojam and the Government apparently remain oblivious.

Where does the buck stop? Who is ripping us off?

TROY VIRTUE

tdvirtue@hotmail.com

http://jamaica-gleaner.com/gleaner/20120709/letters/letters4.html

News Oil

Oil Price Spikes

July 4, 2012 jrobinson

Renewed tensions between Iran and the West pushed oil to its highest level in more than a month.

Iran is again threatening to block a critical Persian Gulf shipping route in response to a European embargo of Iranian oil. Iran has sparred for months with the West over its nuclear programme.

Benchmark US crude added US$3.91, or 4.7 per cent, to end at US$87.66 per barrel in New York. That’s the highest price since May 30.

Brent crude, which sets the price of oil imported into the United States, rose above US$100 for the first time in three weeks, adding US$3.34, or 3.4 per cent, to finish at US$100.68 per barrel in London.

Iran said Tuesday that it test-fired several ballistic missiles, including a long-range variety meant to dissuade an attack by Israel or the US.

The New York Times

News Oil

Price of oil dips- Jamaicans to benefit at the pumps

June 12, 2012 jrobinson

Jamaicans should see more lower prices at the pumps in coming weeks as the cost of

News Oil

Oil Prices Fall On Global Economic Concerns

June 12, 2012 jrobinson

Oil fell Monday on the realisation that a short-term fix in Spain won’t offer a long-term solution to Europe’s debt crisis.

A multibillion-dollar bailout loan for Spain’s banks generated initial enthusiasm in the global stock, bond and energy markets. But by the close in New York, the good feeling had given way to scepticism.

Benchmark oil fell $1.40 to $82.70 per barrel in New York. Brent crude, which is used to price international varieties of oil, dropped 81 cents to $98.66 per barrel in London. The broad S&P 500 stock index fell nearly one per cent.

Leaders of European countries agreed over the weekend to lend Spain up to $125 billion to help its troubled banking system. Spain is the fourth European country after Greece, Portugal and Ireland to request financial help since the debt crisis began.

Oil jumped above $86 per barrel in trading in Asia. But the relief was temporary, replaced by concern over Spain’s ability to repay the money. The potential for Greece to abandon the European currency still hangs over the market, as does a deepening recession in Italy. That turmoil, as well as slowing economic growth in China and the United States (US), is reducing demand for oil, gasolene and diesel fuel.

It’s not yet clear whether Europe’s ongoing efforts to put the financial crisis to rest will result in an economic turnaround. “It just doesn’t seem like that’s very close,” said Michael Lynch, president of Strategic Energy & Economic Research.

Meanwhile, oil supplies continue to build despite ongoing weak demand around the world.

US oil production topped six million barrels a day in the first quarter of 2012, which was a 14-year high, according to the Energy Information Administration. Most of the increase was the result of more production in North Dakota, Texas and the Gulf of Mexico.

Oil’s decline was tempered by data showing China imported nearly six million barrels of crude a day in May. That was about 10 per cent more than April and 18 per cent more than a year earlier. China is a huge importer of oil and other commodities.

Meanwhile, motorists are continuing to see a steady decline in pump prices. The national average for gasolene fell less than a penny overnight to $3.54 per gallon, according to AAA, Wright Express and the Oil Price Information Service. That’s 19 cents less than a year ago. Gas has dropped 50 cents per gallon in a little more than two months.

Natural gas dropped 8.1 cents to $2.218 per 1,000 cubic feet. The price has plunged about 50 cents in three weeks as supplies remain well above normal levels.

In other trading, heating oil fell 3.64 cents to $2.638 per gallon and gasolene dropped 2.86 cent to $2.657 per gallon.

– AP

http://jamaica-gleaner.com/gleaner/20120612/business/business2.html

News Oil

Oil Drops To US$91.66

May 24, 2012 jrobinson

Oil prices dropped near their lows for the year following warnings of a “severe recession” in Europe and an apparent easing of tensions over Iran’s nuclear program.

Benchmark US crude on Tuesday lost 91 cents to end the day at US$91.66 per barrel in New York while Brent crude fell by 40 cents to end at US$108.41 per barrel in London.

Both contracts hit a low for 2012 on Friday at US$91.48 and US$107.14, respectively.

Oil has declined almost every day this month as elections in Greece and France threatened existing plans to fix the eurozone economy. A top economist for the Organization for Economic Cooperation and Development warned Tuesday that the eurozone could fall into recession this year if leaders fail to stimulate the economy.

Stunt growth

If that happens, it would stunt growth in world oil demand at a time when supplies are expanding.

Fears of a protracted standoff with Iran had helped push benchmark crude near US$110 per barrel in February. Prices have since fallen below levels of early November, when the United Nations first warned of a potential nuclear threat from Iran.

Uninterrupted Iranian exports could boost world oil supplies to an average of 89.15 million barrels per day, according to the latest projections from the Energy Information Administration. That would be more than enough to meet world demand.

In other futures trading, natural gas added 9.8 cents, up 4 per cent, to finish at US$2.707 per 1,000 cubic feet.

Natural gas prices have jumped by 42 per cent since hitting a 10-year low on April 19 as supplies declined.

Heating oil and wholesale gasolene were both flat, ending the day at US$2.8614 and US$2.937 per gallon, respectively.

– AP

http://jamaica-gleaner.com/gleaner/20120523/business/business5.html

News Oil

Oil prices hold at lows

May 24, 2012 jrobinson

NEW YORK – The price of oil is holding near seven-month lows following warnings of a “severe recession” in Europe and easing tensions over Iran’s nuclear program.

continuing

Benchmark US crude lost 13 cents to US$92.44 per barrel in morning trading in New York while Brent crude added 27 cents to US$109.08 per barrel in London.

Oil prices have declined almost every day this month as political changes in Greece and France threatened existing plans to fix the eurozone economy. The Organisation for Economic Cooperation and Development says Europe, which consumes 18 per cent of the world’s oil, could fall into recession this year if leaders fail to stimulate the economy

Meanwhile, analysts say Iran‘s oil exports could keep flowing if it lets international inspectors into its nuclear facilities as part of a new deal.

By early afternoon in Europe, benchmark oil for June delivery was down 44 cents to US$92.13 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose US$1.09 to settle at US$92.57 in New York on Monday.

In London, Brent crude for July delivery was up 14 cents at US$108.95 per barrel on the ICE Futures exchange.

Crude has slumped from US$106 earlier this month on fears that global economic growth might slow more than expected this year. In Europe, government austerity measures meant to lower debt have been crippling growth in many large economies like Italy and Spain.

Also hurting energy prices yesterday was a rise in the dollar, which tends to push down oil prices by making crude more expensive for investors trading in other currencies. The euro slipped to US$1.2758 from US$1.2793 late Monday in New York, while the dollar rose to 79.77 yen from 79.36 yen after Fitch lowered Japan’s sovereign debt rating.

Meanwhile, the head of the International Atomic Energy Agency, Yukiya Amano, said Tuesday that Iran had agreed to let IAEA inspectors to resume their investigation into its nuclear program. On Wednesday, talks are set to start in Baghdad between Iran and six world powers about the country’s uranium enrichment efforts and its suspected intent to develop nuclear weapons. Prices had risen in previous months due to international tensions over Iran, which had threatened to block oil shipments out of the Persian Gulf.

News Oil

Oil Hits Lowest Level In 2012

May 15, 2012 jrobinson

The price of oil fell to its lowest for the year Monday on continued doubts about some European countries’ ability to pay off massive government debts.

Benchmark West Texas Intermediate crude lost $1.35 to end the day at $94.78 per barrel on the New York Mercantile Exchange. That’s the lowest level since December 19.

Brent crude, which helps set the price for oil imported by United States (US) refineries, gave up $1.26 to finish at $111 per barrel in London. Brent was last this low at the end of January.

Oil declined as a leadership crisis in Greece raised doubts that it would comply with a eurozone-supported plan to get out of debt. Analysts see Greece as a test case for whether cash-strapped European nations can slash spending and improve their economies. Europe consumes 18 per cent of the world’s oil.

“You have to ask yourself who’s next after the Greeks,” said Gene McGillian, a broker and oil analyst at Tradition Energy. “What happens if Spain or other countries have similar troubles.”

Oil prices have been declining for most of the past two weeks as European leaders wrestled the debt crisis. The US also reported disappointing jobs growth and China’s manufacturing industry grew at a slower pace.

Boosting supplies

As the world’s economy appeared to slow down, major oil producing nations like Libya, Iraq and Saudi Arabia increased oil production, boosting supplies.

The decline in oil prices has helped make retail gasolene cheaper in the US. The national average fell by less than a penny over the weekend to $3.727 per gallon (98 cents a litre), according to auto club AAA, Wright Express and Oil Price Information Service.

In other futures trading, heating oil gave up 3.41 cents to end at $2.9295 per gallon, while wholesale gasolene lost 4.18 cents to finish at $2.959 per gallon. Natural gas dropped 7.8 cents to finish at $2.431 per 1,000 cubic feet.

http://jamaica-gleaner.com/gleaner/20120515/business/business2.html

News Oil

Oil Prices Fall On Growing US Supply

April 19, 2012 jrobinson

Oil prices dropped Wednesday after the government said US supplies grew more than expected last week.

Benchmark West Texas Intermediate crude fell $1.53 to finish at $102.67 per barrel in New York, while Brent crude lost 81 cents to end at $117.97 per barrel in London.

The Energy Information Administration reported that US crude oil supplies grew by 3.9 million barrels last week. Analysts expected an increase of 400,000 barrels. The government’s weekly report also said that US oil demand dropped 2.7 per cent, gasolene demand fell 2.8 per cent, compared with a year ago.

Anemic demands

The data suggest that motorists aren’t filling up as much ahead of the summer driving season.

“You continue to see some pretty anaemic fuel demand levels” in the US, said Gene McGillian, a broker and oil analyst at Tradition Energy.

US retail gasolene prices dipped slightly to a national average of $3.899 per gallon, according to AAA, Wright Express and Oil Price Information Service. The national average has declined by 2.6 cents this month, and it’s now just barely under $3.90 for the first time since March.

Experts say that gasolene prices have levelled off this month, but they’re likely to rise to around $4 per gallon during the next few weeks as more refiners switch to producing summer blends of fuel.

In other energy trading, heating oil gave up less than a penny to finish at $3.1182 per gallon and gasolene futures lost 3.13 cents to end at $3.2027 per gallon. Natural gas futures were unchanged at $1.9510 per 1,000 cubic feet.

http://jamaica-gleaner.com/gleaner/20120419/business/business3.html

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